The True Total Cost of Buying Property in Spain: Every Tax and Fee Explained

Key takeaway: Expect to budget an additional 10–13% on top of the purchase price to cover all taxes and fees when buying property in Andalucía.

The Costs No One Tells You About

International buyers often focus entirely on the purchase price when budgeting for a property in Spain. But the true cost of buying is typically 10–13% higher than the headline price once you factor in taxes, notary fees, registry fees and legal fees. Here is exactly what you will pay.

1. Property Transfer Tax (ITP) — Resale Properties

If you are buying a resale (second-hand) property in Andalucía, you pay ITP (Impuesto sobre Transmisiones Patrimoniales) at 7% of the declared purchase price. This is typically the largest tax cost.

Example: buying a €400,000 apartment in Marbella → ITP = €28,000.

Other regions have different rates: Valencia 10%, Cataluña 10%, Murcia 8%.

2. VAT + Stamp Duty — New-Build Properties

For new-build properties purchased directly from a developer, the tax structure is different:

VAT (IVA): 10% of the purchase price (21% for land or commercial property)
Stamp duty (AJD — Actos Jurídicos Documentados): 1.2% in Andalucía

Example: buying a new-build at €350,000 → IVA €35,000 + AJD €4,200 = €39,200.

3. Notary Fees

The notary fees for signing the purchase deed (escritura de compraventa) are set by a regulated scale and typically range from €800 to €2,500 depending on the purchase price. The buyer normally pays the notary fees for the purchase deed.

4. Land Registry Fee

After the notary signs the deed, it must be registered at the Land Registry (Registro de la Propiedad). Registration fees are also on a regulated scale: typically €400–€1,200 depending on the property value.

5. Legal Fees

A dedicated real estate lawyer typically charges between 0.5% and 1% of the purchase price (often with a minimum fee). On a €350,000 property this is approximately €1,750–€3,500. This covers due diligence, contract review, NIE application, tax filing and notary representation.

6. Mortgage Costs (if applicable)

If you are taking a Spanish mortgage, additional costs include:

Property valuation (tasación): approximately €300–€600
Bank arrangement fee: 0.5–1% (some banks waive this)
Life insurance (often required): variable

Note: since the 2019 Mortgage Law reform, the bank pays its own stamp duty on mortgage deeds. The buyer only pays the valuation.

Summary Table

Cost	Resale	New Build
ITP (property transfer tax)	7% (Andalucía)	N/A
VAT (IVA)	N/A	10% (21% for land)
Stamp duty (AJD)	N/A	1.2% (Andalucía)
Notary fees	€800–€2,500	€800–€2,500
Land Registry fee	€400–€1,200	€400–€1,200
Legal fees	0.5–1%	0.5–1%
Total additional costs	~10–11%	~12–13%

A Practical Example

You are buying a resale villa in Estepona for €600,000. Here are the approximate costs:

ITP at 7%: €42,000
Notary fees: €1,800
Land Registry: €1,100
Legal fees (0.75%): €4,500
Total additional costs: approximately €49,400 (~8.2% + taxes = ~10.9% overall)

Can Costs Be Negotiated?

Notary and Land Registry fees are set by regulation and cannot be negotiated. ITP, IVA and AJD are set by law and by regional government. Legal fees vary by lawyer — but selecting the cheapest option is rarely the best strategy for a transaction of this size.

What you can negotiate is the purchase price itself. A lawyer who identifies a planning issue or an outstanding debt on the property can often negotiate a significant price reduction that exceeds the cost of the legal service.